Today, we’re thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain has made him a sought-after voice in the cryptocurrency space. With a keen interest in how these technologies intersect with financial markets, Dominic offers unique insights into the volatile world of digital assets. In this interview, we dive into the recent downturn in crypto prices, exploring the factors behind Bitcoin’s struggle, Ethereum’s sharper decline, and the broader market dynamics influenced by economic data and policy shifts. We also unpack technical thresholds, investor behavior, and what might lie ahead for the crypto landscape.
Can you walk us through the reasons behind Bitcoin’s recent drop to $107,785?
Absolutely. Bitcoin’s decline to $107,785, a 2.43% drop, reflects a mix of market caution and external pressures. Investors are on edge ahead of the upcoming US jobs report, which could sway the Federal Reserve’s stance on rate cuts. A weaker jobs number might signal economic slowdown, which spooks markets in the short term, even if it raises hopes for lower rates later. On top of that, comments from Treasury Secretary Scott Bessent about recession risks, particularly in sectors like housing, have rattled investor confidence. When you combine economic uncertainty with Bitcoin already struggling below key resistance levels, it’s no surprise we’re seeing this pullback.
How are broader economic policies, like the Federal Reserve’s high interest rates, impacting the crypto market’s current downturn?
High interest rates from the Fed are a major headwind for crypto right now. They make borrowing more expensive and reduce liquidity in the system, which hits risk assets like cryptocurrencies hard. Investors tend to pull back from speculative investments when safer options, like bonds, offer better returns due to higher rates. Bessent’s remarks about the housing sector showing recessionary signs only add to the fear that tight monetary policy could tip parts of the economy into a downturn. That uncertainty is driving a ‘risk-off’ mentality, and we’re seeing the entire crypto market trade in the red as a result.
Ethereum seems to be taking a harder hit than Bitcoin, dropping 4.25% to $3,732. What’s driving this steeper decline?
Ethereum’s sharper drop is largely tied to waning institutional interest. Demand for Ethereum ETFs has cooled significantly, with monthly inflows dropping from over $5 billion in the summer to just $600 million in October. When you have less capital flowing in, especially from big players, the price becomes more vulnerable to market corrections. Additionally, the concentration of buying with firms like Bitmine means there’s not enough broad-based support to stabilize the price. Without diverse institutional participation, Ethereum is struggling to hold its ground compared to Bitcoin, which still dominates in terms of investor trust during uncertain times.
Bitcoin has been unable to break above the $113,000 level for weeks. Why is this price point so significant?
The $113,000 mark is crucial because it represents the average cost basis for short-term Bitcoin holders. When the price sits below this level, it signals that many recent buyers are underwater, which often leads to selling pressure as they try to cut losses. It’s also seen as a psychological and technical threshold between bullish and corrective market phases. Bitcoin traded above this level for six months prior, so failing to reclaim it after three weeks suggests weakening momentum. If the price keeps sliding, analysts point to $88,000 as the next major support zone, based on historical data of actively circulating supply costs.
We’ve noticed long-term Bitcoin holders selling off significant amounts recently. How is this affecting the market?
This selling by long-term holders is definitely adding downward pressure on Bitcoin’s price. We’ve seen massive transfers to exchanges like Kraken and Binance, with over $1.8 billion worth of BTC moved in October alone. When long-term holders—often seen as the ‘strong hands’ in the market—start offloading, it signals to others that even the most confident investors are taking profits or losing faith. This boosts supply on exchanges, and without matching demand, the price naturally dips. It’s a trend that could keep Bitcoin under strain in the short term unless buying momentum picks up.
Other major cryptocurrencies like Solana and Dogecoin have seen even bigger losses than Bitcoin. What’s causing these steeper declines?
Tokens like Solana, down 5.16%, and Dogecoin, down 6.60%, are more speculative by nature compared to Bitcoin. They tend to attract riskier capital, and in a ‘risk-off’ environment like we’re seeing now, investors flee to safer assets within crypto—namely Bitcoin, which still holds the lion’s share of market dominance. Smaller altcoins lack the same level of institutional backing or perceived stability, so they get hit harder during market downturns. Additionally, their higher volatility means price swings are often amplified, both on the upside and downside.
Looking at Ethereum again, do you think the upcoming Fusaka network upgrade in December 2025 could spark a recovery?
The Fusaka upgrade could certainly be a positive catalyst for Ethereum, but it’s not a guaranteed fix. Network upgrades often improve scalability or efficiency, which can attract developers and users back to the ecosystem over time. If Fusaka delivers meaningful improvements, it might reignite interest and bring in fresh capital. However, with institutional demand currently so low and broader market sentiment cautious, the impact might be muted in the short term. It’ll depend on how well the upgrade is received and whether the overall economic backdrop improves by then.
What’s your forecast for the crypto market in the coming weeks, especially with the US jobs report on the horizon?
I think the next few weeks will hinge heavily on the US jobs report and what it signals about the Fed’s next moves. If the data comes in weaker than expected, it could bolster the case for rate cuts, which might provide a short-term lift to crypto as liquidity expectations rise. However, if it points to persistent economic strength, the Fed might hold rates high, keeping pressure on risk assets like cryptocurrencies. Bitcoin’s struggle below $113,000 and selling from long-term holders suggest we could see further downside if sentiment doesn’t shift. I’d keep an eye on that $88,000 support level for Bitcoin—it could be a critical test if selling intensifies.